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Binance has secured a historic $2 billion investment from MGX, an Abu Dhabi-based AI and advanced technology investor. By acquiring a minority stake in Binance, MGX aims to support the convergence of AI, blockchain, and digital finance, the company said in an announcement on Thursday.
Binance has already established a significant presence in the UAE, with 1,000 of its 5,000 global workforce in the region.
Last year, Binance moved all of its UAE users to its Dubai VARA-regulated FZE exchange. The move came six months after the exchange withdrew its Abu Dhabi license, which it stated was "not necessary."
Binance received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in April 2024.
The VASP license upgraded the previous Minimal Viable Product (MVP) license held by local subsidiary Binance FZE since July 2023, allowing the exchange to extend its product offerings to retail investors alongside qualified institutional investors in the emirate.
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Ahmed Yahia, managing director and CEO of MGX, emphasized the strategic importance of the investment. "MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance," he said in a statement. "As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater."
Binance CEO Richard Teng, who previously led the Abu Dhabi Financial Services Authority, described the investment as a "significant milestone" for the crypto industry as well as Binance.
"Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection," Teng said.
In October, the UAE's Federal Tax Authority made the virtual assets exempt from VAT.
These revisions attempt to align with previous revisions to the Decree-Law and other applicable tax laws, clarify important clauses and processes, and provide more information.
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According to the new law, which pertains to financial services, management of investment funds, ownership and transfer of virtual assets, including cryptocurrencies, and conversion of virtual assets, would not be subject to value-added tax.
